Question

This Test 17 pts possible 0 The standard variable overhead contrate for the Crosky Company is $12 perut Budged bead wad con 300.000 The Crosky Company bugeted 4.000 is to the current period and prod. tried to What the production volume variar? Assume the location base for free overhead cons is the number one expected to be produced OA $2,100 favorable OB. $3.780 unfavorable OC 12,100 unfavorable OD $3,780 favorable

Answer 1

Calculation of Production volume variance : A) Budgeted fixed overhead cost $60,000 B) Budgeted production 4,000 units C) Budgeted fixed overhead cost per unit (A/B) $15 D) Budgeted variable overhead cost per unit $12 E) Budgeted total overhead cost per unit (C+D) $27 F) Actual production 3,860 units G) Production volume variance (F-B)*E] $3,780 Unfavorable Hence option B is correct. Notes: 1) Production volume variance = (Actual production-Budgeted production) *Budgeted overhead cost per unit 2) Since, actual production is less than budgeted production, Production volume variance will be unfavorable

Calculation of Production volume variance : A) Budgeted fixed overhead cost $60,000 B) Budgeted production 4,000 units C) Budgeted fixed overhead cost per unit (A/B) $15 D) Budgeted variable overhead cost per unit $12 E) Budgeted total overhead cost per unit (C+D) $27 F) Actual production 3,860 units G) Production volume variance (F-B)*E] $3,780 Unfavorable Hence option B is correct. Notes: 1) Production volume variance = (Actual production-Budgeted production) *Budgeted overhead cost per unit 2) Since, actual production is less than budgeted production, Production volume variance will be unfavorable